Preferred Share ETF to Replace or Augment Bond ETF

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Mar 21st, 2022 12:07 am

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Mar 16th, 2022 2:06 pm

dutchca [OP]: Deal Fanatic; Jan 27, 2007; 5108 posts; 971 upvotes; T.

Mar 16th, 2022 2:06 pm

Preferred Share ETF to Replace or Augment Bond ETF

With interest rates almost certainly continuing to increase driving bond prices down, what are your thoughts on replacing or allocating a portion the bond component of a CP Portfolio to a Pref. Share EFT?

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Mar 16th, 2022 2:42 pm

Deepwater: Deal Addict; Feb 1, 2012; 2041 posts; 3426 upvotes; Thunder Bay, ON

Mar 16th, 2022 2:42 pm

Prefs will be riskier and more volatile than bonds. Take a look at the performance of CPD and ZPR, especially in 2015-2016 and 2020. Is that what you think would be a good replacement for bonds? It depends on how much you value stability and why you hold bonds in the first place.

Here are some good resources:
https://www.himivest.com/WhyPreferred.pdf
https://canadiancouchpotato.com/2015/03 ... ed-shares/
https://canadiancouchpotato.com/2015/03 ... ed-shares/

Once you understand the above links, you will be more prepared to decide for yourself if prefs are right for you.

I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.

+2

Mar 20th, 2022 11:50 pm

seatiger: Deal Addict; Mar 30, 2017; 1214 posts; 975 upvotes; GVA

Mar 20th, 2022 11:50 pm

fixed rate prefs will just behave like bond in a rate rising environment.

profit on 6/23/2021 = 117.61% since 11/10/2020 to be exact😎

Mar 21st, 2022 12:07 am

rfd911: Member; Oct 6, 2017; 393 posts; 442 upvotes

Mar 21st, 2022 12:07 am

DFN.PR.A or FTN.PR.A or LBS.PR.A

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